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Sale Approval Positive But Mayor Cautious

By 250 News

Thursday, August 21, 2008 01:37 PM

Prince George, B.C.- The Mayor of Mackenzie, Stephanie Killam, says news the court has approved the sale of the Mackenzie Pulp Mill to a numbered B.C. company is welcome but she is still cautious “I won’t celebrate until the workers walk back across the sills to return to work, but certainly this is positive news.”
 
Killam says the news won’t mean the community will abandon its diversity plans, “We are still working towards securing fights to and from Fort McMurray, we continue to work on infrastructure development and work projects to keep our residents working.”
 
Killam says the Mackenzie Pulp mill is one third of the employment puzzle that faces Mackenzie and much more work will need to be done.  
 
The court also ruled the agreement between Canfor and the Mackenzie Pulp mill which called for Canfor to provide  chips , is valid.  Mayor Killam doubts Canfor  will reopen its sawmill in her community to meet it’s end of the agreement “My understanding is that Canfor will appeal that ruling, so there is still some work to be done on that matter.”  Canfor has until September 2nd to decide if it will appeal the decision.
 
The new owner, Dan White of Worthington Properties, plans to be in Mackenzie tomorrow.
 
The $20 million dollar offer to purchase is supposed to close on September 22nd   , the final price will depend on the status of the chip supply and meeting that closing date.

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Comments

She's right, Canfor will not reopen their Mackenzie mill. If they have to, they will figure something else out, probably setup a chipper. I'm betting they will get out of the contract though.
Can you say Repap, remember Prince Rupert
Let's see. The present deal is for 20 million. Without the chip contract the pulp mill price is 6.5 million. Seems the chip contract is worth twice as much as the whole pulp mill.
A property developer getting into the pulp mill business. I hope he has real deep pockets.
The 2 majors being Canfor and West Fraser did not bid on the mill. There is just something a little fishy about this whole deal.
Why would Canfor bid on it, they do not want to run what they have in Mackenzie right now let alone purchase the Pulp Mill. It is nice to see that a big corporation did not bid on the Pulp Mill. We have seen first hand in Mackenzie what big corporations do. Shut every mill down!!! Lets just hope that everything goes well with the sale.
Resident. I beleive that without the chip contract the price for the pulp mill is reduced by 6.5 million. Meaning the mill will sell for 13.5 million. Still cheap by any standard, however purchasing it is one thing. Running it and making a profit is a different story.
This is a gong show waiting to happen.

What are the odds he arrives on a Harley?

Sad.